C12-Chp-00-5-Big Picture - Taxation of Entities

C12-Chp-00-5-Big Picture - Taxation of Entities -...

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da478d026439e5f9c3e11dbe9358390636175c7e.xls Big Picture - Taxation of Entities Code Individuals have no income other than amounts shown. Big Manuracturing Corporation is a C Corporation. Ann, stockholder of C Corporation. Ann bought 10% of Big stock on 1-1-12 for: $60,000 Form 1040 Big Corporation paid salary to Ann in 2012: $200,000 §61. (124) §1.61-2 (1082) Ann's ownership of Big Corporation in 2012: 10% Big Corporation's net income in 2012: $50,000 Big Corporation paid dividend to Ann in 2012: $1,000 §301( c)(1), 316, 317, 1(h) Ann's Gross Income on Form 1040 for 2012. §1, 61, 62, 301 Ann's basis in stock of corporation at 12-31-2012. §1012 Form 1120 Income tax liability before credits for the corporation. §11(b)(1), 61, 63, 161 Corporate tax liability if it is an accounting firm. §11(b)(2), 61, 63, 161 Beth, partner in BCD Partnership. Beth bought interest in BCD Ptshp on 1-1-2012 for: $30,000 Form 1040 BCD Partnership Rent Revenue $90,000 BCD Partnership expenses $50,000 BCD Partnership net income in 2012 $40,000 Beth's ownership of BCD Partnership 25% §702 Beth's withdrawal from BCD in 2012 $4,000 §731, 1012 Beth does not receive a salary from BCD. Beth's Gross Income on Form 1040 for 2012.
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This note was uploaded on 03/09/2012 for the course ACCT 6120 taught by Professor Godfrey,h during the Spring '08 term at UNC Charlotte.

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C12-Chp-00-5-Big Picture - Taxation of Entities -...

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